How to Create a Predictive Model for Better Direct Mail Marketing ROI

November 09, 2015

What if you could tell the future before sending out your direct mail marketing pieces?

If you knew which of your recipients would be more likely to open your mail and which would probably trash it, wouldn’t you use that information to determine who received postcards and flyers? Well, with predictive modeling, you can. You can deliver mail based on buyers’ propensities, using a scoring method that’s already prebuilt and ready to use within your industry.

Predictive modeling uses lots of data to determine the probability of a certain outcome. Do you know what’s important to your prospective customers? Do you know which of your prospective buyers is most likely to identify with your branding, even if they’ve never had contact with your brand? Do you know how much money those prospects have to spend on your products?

Everything you learn about each of your customers helps you determine their likelihood to respond to your direct mail efforts. If you could be sure you’d reach buyers who are more likely to connect with your brand, products, and services, you could probably save a ton on your marketing outreach, right? You’ve already laid the groundwork for this with your segmentation, especially if you’ve taken the time to segment according to a wide variety of factors.

Now, once you have all the data you need, you must know what to do with it. Here are a few things to keep in mind.

Predictions That Help Most

Before you begin a direct mail campaign based on predictive modeling, you should have some idea of the outcome you hope to achieve. Some of the propensities to focus on include brand affinity, attitude and behavior, media and channel use, spending habits, and even specific product purchases. Knowing these things about your customers will help you craft messages that really reach them. Even better, you’ll get those results quickly, save money on marketing, and see a much higher return on your investment.

The next time you plan to acquire a list, consider the benefits that predictive modeling can provide. Gain insights into your buyers’ likelihood to read, respond, convert, and continue to grow in value throughout the lifetime of their loyalty to your brand.

How to Get the Information

You can get your hands on one of thousands of ready-built propensity model scores that are targeted to your exact industry. You may not even need many tweaks to get the outcome you’re looking for. These lists are compiles from data that takes into account demographics, media use, past purchases, likelihood of future purchases, and the general attitude toward your brand and other brands like yours.

These lists that essentially predict who will react to your direct mail are just waiting for you. You could try to create your own predictive model by collecting data for years, creating algorithms, and running software programs. Or you could rent a list that’s already tailor-made to your specific needs. In most cases, the pre-prepared audience list is even more effective than one created specifically for each campaign.

To learn more about how we can use predictive modeling to help you grow your business, just reach out. We’re happy to show you how it all works and even give you some statistics from our greatest success stories.